Seriously, if you want to increase your credit score then start on the right path today! You can do this and we will teach you how! You could have messed up your credit report during your college years, or maybe you had a serious hardship at one point, or maybe you just graduated on our debt settlement program. Whatever the case may be, anyone can rebuild and increase their credit score.
Nine Tips to Increase Credit Score
1. Build a High Credit Score, not High Credit Card Debt – Increase credit limits when you can
The idea is to raise your credit limits, while keeping your balances low. You want to build a high credit score and not high credit card debt.
After paying a credit card on time for nine months straight, assuming you’re doing everything else right, and keeping your overall credit card debt low, it’s now time to request that your credit limit is increased on at least one of your cards. You don’t want to request this too often because you don’t want too many inquiries on your credit report, which could lower your credit score.
A good time to request an increase on a credit card would be after 9 months of good practicing. That is usually a safe time to pick the account that you have been doing best on for the longest time-frame, and request for a credit increase on that account.
Continue increasing credit limits whenever you can. This helps to build a high credit score and not high credit card debt!
Don’t pay minimum payments on maxed out and high credit card debt. If you have maxed out credit cards, and you are only paying minimum payments, this can lower your credit score. Is it too late to follow tip #1? (“Build a High Credit Score, not High Credit Card Debt“) If “YES” Then flip through the following slides to learn how to pay off your credit cards in the fastest time-frame.
2. Utilize Less Than 30% of Your Credit Limit – Balance to limit ratio
The “utilization” on your credit cards is a major factor that helps to determine your credit score. It helps to increase your credit score when you are utilizing less than 30% of what your credit limit is. This also keeps you out of high credit card debt! This tip goes along side with tip #1.
Example: If you have a credit card account that has a $500 limit and your balance is below $150, that’s good because your total credit card debt on that account is below 30% of what your limit is.
If your credit card balances are above the 30% mark, then I recommend trying this debt reduction payoff calculator tool to find out how much you have to pay in order to get your balances under the 30% mark.
You can also try the calculator right here on this page.
3. Pay Your Bills on Time
You can actually start to establish a good payment history after staying current on your credit cards for only 3-6 consecutive months.
Don’t ever be late.
If you have credit cards, set them up online so the balances are paid off at the end of each month automatically. You can usually set this up at the credit card companies online bill pay area. This will allow you to maintain a perfect payment history on these accounts, low credit card debt and all while increasing your credit score.
4. Remove collection marks
Collection marks can really lower your credit score. It is very easy to dispute a negative collection mark and have it removed from your credit report.
Join with FreeCreditReport.com. Once you are a member, just look for where it says to dispute a mark. There will then be directions that walk you through how to dispute a mark. If you dispute the mark, the collection agency now has 30 days to respond with proof that what you’re saying is false or verification that it is your account and you do owe the money. If they don’t respond, the mark will fall off your credit report automatically.
Give us a call here at Golden Financial Services if you need any help with this step. Call 866-491-3095.
If you see a collection mark on your credit report that is yours, you can call the collection agency and pay it off. However, make sure that if you pay it off or settle it, the collection agency agrees to have it removed from your credit report and not just report it paid. Learn how to settle debt on your own. (we also provide you with a settlement letter template)
In many cases people will pay off collection accounts, but the accounts will remain on their credit report still negatively affecting them. Make sure the collection agency agrees in writing to have the account removed from your credit report at the time you pay it off. Sometimes paying off a collection account and not having it removed can cause your credit score to go down, so be careful.
Here at Golden Financial Services we specialize in settling debt. If you have high collection or credit card debt that you would rather have us settle in order to save you the most money and protect you if lawsuits occur, then visit our Debt Settlement Service Page.
5. Monitor Your Credit Report Monthly – This is an important step that everyone should follow and especially if you are working to increase your credit score fast.
Again FreeCreditReport.com is a great site that most of our clients use after graduating on the debt settlement program in order to monitor and build their credit score. FreeCreditReport.com works great because of the fact that you will get emailed or text message alerts whenever your score goes up, when it goes down, when something negative falls off your report, when something negative goes on your report, etc… Monitor your success!!
6. Use Credit Cards
If you use your credit cards once each month and just to buy gas or small purchases, then pay all of the balances off in full each month, this is a best practice strategy. You want to show lenders that you are responsible with using your cards. If you get a credit card and keep the balance at zero dollars, but have not used the card once in twelve months, this is not helping you. Use your cards, and pay them off in full each month or at least keep the balance below 30% of what the limit is. Keep in mind; if you are paying your accounts off in full each month, you are also saving money in interest. Using this technique will help to increase your credit score fast!
If you are new to the world of building credit, then you may need to start with getting a secured credit card where you put up real money as collateral. This is a guaranteed way to get your first credit card if you have no credit and cannot get approved for an unsecured credit card.
7. Have Secured Debts and Unsecured Debts – Mix of accounts
It is good to have revolving and installment loans that you are paying on. Creditors like to see that you have a mix of accounts. Revolving debt is credit card debt, and installment loans are like your mortgage or car payment. It will help to increase your credit score when you show that you have good payment history on revolving and installment loans.
8. Don’t open too many credit cards that you are not using
Your credit score can actually go down if you open too many credit cards and never use them. The idea is to show creditors that you can use cards responsibly. Have two or three credit cards and one or two installment accounts like a car or mortgage payment, then practice following all the best practice rules on this page, and your credit score will increase.
9. Adding Someone as a Joint Account Holder to Increase Credit Score
I love this step because it really works!
Check out this inspiring story of a guy who really screwed up his credit score in his college days, and then rebuilt it to around the 750 mark. (in this story you will notice he used this tip)
If your parents have a few credit cards that have a balance less than 30% of what their limit is and their overall credit score is high, then getting added to one of their cards is a great way to help increase your credit score fast. Ask them to add you as a joint account holder.
If you add someone as a joint account holder, they will also hold the responsibility of that card, meaning they would be equally and fully responsible for the debt.
Increase Your Credit Score Today!
It’s really not that difficult to do, but takes practice, perseverance, motivation, knowledge and hard work!
Is it too late and you already have maxed out credit card debt where it’s near impossible to follow these rules? Credit card relief programs can assist you with paying off these high balances. In the end you will be debt free and you can then start working to increase your credit score by following these rules.
Whatever the case is, here at Golden Financial Services our debt enrollment specialists are here to assist you with any questions you may have about increasing your credit score or credit card relief programs at 1-866-376-9846